L R AS Published on Monday 4 May 2020 - n° 320 - Categories:funding
GCL Poly or the fall of a former world leader
The pandemic is having a direct effect on GCL-Poly, which is struggling with staggering debt: the breach of a bank loan commitment of RMB 557 million (US$ 78.7 million) has triggered cross-defaults.
RMB 5.17 billion of other credit lines, of which RMB 3.64 billion should have been settled this year.
The coronavirus epidemic has delayed the response of an unmentioned European lender. This means that GCL cannot confirm that it will default on the immediate settlement of the RMB 557 million on which it has breached the commitment, plus the RMB 5.17 billion cross-default.
Contrary to its competitors' claims that the pandemic has had no effect, GCL has admitted that the outbreak has affected its silicon and wafer manufacturing operations, whereas its business had suffered last year from a fall in sales prices.
PV Magazine of 29 April
Editor's note The group is artificially kept in business both because it is still too big, and also because the provinces are trying to keep their activities going even in a state of advanced bankruptcy!
